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Accounting Standards Summary Objectives

To standardize accounting methods and procedures. To lay down principles for preparation and presentation. To establish benchmark for evaluating the quality of financial statements prepared by the enterprise. To ensure the users of financial statements get creditable financial information. To attain international levels in the related areas

Accounting Standards and The Companies Act, 1956 Section 211 sub sections (3 A), (3 B) and (3 C) inserted by the Companies Amendment Act, 1999 w.e.f. 31.10.1998: (3A) every P & L Account and Balance Sheet shall comply with accounting standards, (3 B) deviations, if any, to be disclosed with reasons and financial effect of deviation, (3 C) "accounting standards" means standards of accounting recommended by ICAI or as may be prescribed by Central Govt. in consultation with National Advisory Committee on Accounting Standards. Section 217 sub section (2AA) inserted by the Companies Amendment Act, 2000 w.e.f. 13.12.2000: (2AA) The Board's report shall also include a Directors' Responsibility Statement indicating therein (1) that in preparation of annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departure. Section 227 sub section (3)(d) inserted by the Finance Act, 1999 w.e.f. 31.10.1998: (3)(d) the auditor's report shall also state whether, in his opinion, the P & L Account and the Balance Sheet comply with accounting standards referred in section 211 (3C),

(4) where answer to (3)(d) is negative or with qualification, it shall also state the reasons thereof. ACCOUNTING STANDARDS ISSUED BY ICAI:

AS-1 DISCLOSURE OF ACCOUNTING POLICIES AS-2 VALUATION OF INVENTORIES AS-3 CASH FLOW STATEMENTS AS-4 CONTINGECIES AND EVENTS OCCURING AFTER THE BALANCE SHEET DATE AS-5 NET PROFIT OR LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS AND CHANGES IN ACCOUNTING POLICIES AS-6 DEPRECIATION ACCOUNTING AS-7 ACCOUNTING FOR CONSTRUCTION CONTRACTS AS-8 ACCOUNTING FOR RESEARCH AND DEVELOPMENT AS-9 REVENUE RECOGNITION AS-10 ACCOUNTING FOR FIXED ASSETS AS-11 ACCOUNTING FOR THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES AS-12 ACCOUNTING FOR GOVERNMENT GRANTS AS-13 ACCOUNTING FOR INVESTMENTS AS-14 ACCOUNTING FOR AMALGAMATIONS AS-15 ACCOUNTING FOR RETIREMENT BENEFITS IN THE FINANCIAL STATEMENTS OF EMPLOYERS AS-16 BORROWING COSTS

RECENTLY ISSUED ACCOUNTING STANDARDS WITH DETAILS


AS - 17 SEGMENT REPORTING AS - 18 RELATED PARTY DISCLOSURES AS - 19 LEASES AS - 20 EARNING PER SHARE AS - 21 CONSOLIDATED FINANCIAL STATEMENTS AS - 22 ACCOUNTING FOR TAXES ON INCOME AS - 23 ACCOUNTING FOR INVESTMENTS IN ASSOCIATES IN CONSOLIDATED FINANCIAL STATEMENTS AS - 24 DISCONTINUING OPERATIONS AS - 25 INTERIM FINANCIAL REPORTING AS - 26 INTANGIBLE ASSETS AS - 27 FINANCIAL REPORTING OF INTERESTS IN JOINT VENTURE

Segment Reporting Objectives Provides information about the different types of business activities in which an enterprise engages (business segment) and the different economic environments in which it operates (geographical segment). This should help users of financial statements:

Better understand the enterprise's performance. Better assess the risks and returns of the enterprise. Better assess its prospects for future net cash flows. Make more informed judgements about the enterprise as a whole.

IFRS and IAS Summaries - English (2011) Summaries as at 1 January 2011:

Framework - Technical Summary

IFRSs:

IFRS 1 First-time Adoption of International Financial Reporting Standards IFRS 2 Share-based Payment IFRS 3 Business Combinations IFRS 4 Insurance Contracts IFRS 5 Non-current Assets Held for Sale and Discontinued Operations IFRS 6 Exploration for and evaluation of Mineral Resources IFRS 7 Financial Instruments: Disclosures IFRS 8 Operating Segments

IASs:

IAS 1 Presentation of Financial Statements IAS 2 Inventories IAS 7 Statement of Cash Flows

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors IAS 10 Events After the Balance Sheet Date IAS 11 Construction Contracts IAS 12 Income Taxes IAS 16 Property, Plant and Equipment IAS 17 Leases IAS 18 Revenue IAS 19 Employee Benefits IAS 20 Accounting for Government Grants and Disclosure of Government Assistance IAS 21 The Effects of Changes in Foreign Exchange Rates IAS 23 Borrowing Costs IAS 24 Related Party Disclosures IAS 26 Accounting and Reporting by Retirement Benefit Plans IAS 27 Consolidated and Separate Financial Statements IAS 28 Investments in Associates IAS 29 Financial Reporting in Hyperinflationary Economies IAS 31 Interests in Joint Ventures IAS 32 Financial Instruments: Presentation IAS 33 Earnings per Share IAS 34 Interim Financial Reporting IAS 36 Impairment of Assets IAS 37 Provisions, Contingent Liabilities and Contingent Assets IAS 38 Intangible Assets IAS 39 Financial Instruments: Recognition and Measurement IAS 40 Investment Property IAS 41 Agriculture

Dear Reader both IFRS and IAS are accounting standards which has been made for proper working of accounting by accountants in any company. IFRS means international financial reporting standards, while, IAS means international accounting standards. Both are used US and other advance countries but there are also many difference between IFRS and IAS.

1. All the accounting standards which were made between 1973 and 2001, are called AIS and all accounting standards which were after 2001, are called IFRS. 2. IAS were made by International Accounting Standards Committee (IASC) and IFRS were made by International Accounting Standards Board (IASB). 3. Some new rules were made in IFRS which was not in IAS like rules regarding identification, measurement, presentation and disclosure of non-current assets held for sale. 4. Total IAS are 41 and still total IFRS are 9. 5. differences between IAS 39 and IFRS 9 Classification of equity instruments a) IAS - Fair Value Through Profit & Loss (FVPL) Available-for-sale (AFS) b) IFRS - Fair Value Through Profit & Loss (FVPL) Fair Value Through Other Comprehensive Income link